Stroger considers repealing Cook sales tax hike

Cook County Board President Todd Stroger will ask the board today to repeal some of the 1-percentage-point sales tax increase that took effect in the county last year.

"Cook County now anticipates additional revenue as a result of President Obama's federal economic stimulus plan and negotiations with the State of Illinois regarding the public health portion of the county's budget," Stroger said in a statement released Tuesday night. "This has opened the door to a reduction in the sales tax increase."

Stroger will propose reducing the sales tax by a quarter-point, knocking down last year's increase from 1 point to 0.75 point. The total county portion of the sales tax would be reduced to 1.5 percent from 1.75 percent.

His administration says it can roll back the sales tax without hurting the budget.

"We're still in a very dire economic and public health care public crisis," Stroger spokesman Sean Howard told ABC 7 Chicago. "We can't forecast where this downward spin is going to turn or stop. But we see some form of relief just in small part, where we can now offer a rollback back to our residents."

Howard said Stroger's actions are not in response to a planned news conference on Wednesday that Republican Commissioner Tony Peraica will hold to announce his plans to repeal the entire sales tax increase.

"We need to provide some immediate relief right now, because people are losing their homes, they're losing their jobs," Peraica told ABC 7.

Stroger believes he has the votes on the Cook County Board to get his repeal passed, Howard said.

State Sen. Matt Murphy, a Palatine Republican, got word of Stroger's plan while watching the 10 o'clock news.

"It's a nice start," Murphy said. "I think he finally heard the voice of the people who voted overwhelmingly in nine townships to roll it back. That's good news, but it's only a fraction. It's not the whole thing, but it's a start."

Last month, the Palatine Republican floated the idea of running against Stroger for the county's top post. He eventually backed off, saying he didn't think Stroger would emerge as his party's nominee come February 2010.

"This is not a reaction to the president's stimulus package," Murphy said. "This is a reaction to the people throughout the county who said his sales tax hike is a disaster. It's also showing his desire to run for re-election.

"I don't think this is a sign he's willing to roll back the sales tax hike all the way like he should. But again, it's a start."

The increase that took effect July 1, 2008, had made Cook County's sales tax one of the highest in the country. It was expected to bring in $400 million more in tax revenues each year for the county.

But it led to calls in some Northwest suburbs to secede from the county. Voters in some townships in an advisory referendum April 7 said they should secede and form their own county, and in another referendum voters said the 1-point-higher sales tax should end.

An effort to roll back the 1-point increase failed in the state House last month.

Stronger and Peraica both have news conferences scheduled for 9:30 this morning. The Cook County Board convenes at 10 a.m.

Repeal: Commissioner to propose full repeal of sales tax hike